Pennsylvania Bio has posted to our website and our Pennsylvania Bio Community a summary of our 2010 priorities as compared against the enacted 2010-11 budget, which was signed by Governor Rendell on July 6th.
Highlights of the budget include:
- $28.04 billion total spending
- $207 million (0.74%) increase from 2009-10
- Assumes $850 million in additional dollars from the Federal Medical Assistance Percentage (FMAP)
- $250 million increase in basic education spending
Overall, the budget includes no changes to the sales tax, as originally proposed by Governor Rendell, no additional taxes on cigarettes, cigars or smokeless tobacco. It does not include the adoption of combined reporting and it Maintained structural improvements to business taxes, as set forth in the 2009-10 budget, with regard to sales factor apportionment for the corporate net income tax and improved caps to the NOL.
Concerns remain, though, particularly around some key areas:
- Plan if FMAP extension does not receive Congressional approval
- Court-ordered repayment of $800 million to the MCare fund and the Health Care Provider Retention Account
- Expiration of ARRA dollars
- Looming pension “cliff”
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